SCT Logistics receives new green locomotives

Intermodal freight company SCT Logistics is taking possession of its six new carbon friendly locomotives

By Anna Game-Lopata | February 24, 2012

Intermodal freight
operator SCT Logistics is taking possession of its six new carbon friendly locomotives.

After using Australian manufactured locomotives, SCT CEO Geoff Smith confirmed in September 2010, the company had struck a deal with China Southern Railways (CSR Ziyang) and MTU Germany for the rolling stock.

SCT General Manager-Rail Noel Ramsey tells SupplyChain Review the company was looking for alternative technology to improve the reliability and flexibility of the company’s rail haulage service.

Manufactured by CSR Ziyang, the new locomotives meet Environment Protection Authority and Australian engineering standards.

"They emit less carbon than others in the market and set a benchmark for the Australian rail industry moving forward," Ramsey says.

The move follows SCT Logistics’ entry into the resources market last September, having secured a multi-million dollar contract to haul iron ore for IMX Resources in South Australia.

SCT created a new entity, Specialised Bulk Rail (SBR), to reflect its new bulk rail presence, having been involved in the consumer goods market for 35 years.

The first stage of the IMX contract is estimated to generate more than $150 million in revenue for SBR, with the company anticipating the figure to grow to $300 million when the second stage begins.

Under the contract with IMX, SBR will haul minerals from the Cairn Hill mine south-east of Coober Pedy. The company says it has the capability to move up to 2 million tonne of iron ore each year.

The company has spent some $100 million buying new locomotives over the last 5 years, to the point where one interstate freight trip carried a record-setting 6,000 tonnes, an amount which would require 87 B-doubles if it was carried via road.

SCT Logistics will receive all the new CSR Ziyang locomotives by the end of June, bringing the total number of its fleet to 31.

Get daily updates on the industry by subscribing to the Fullyloaded newsletter, joining our LinkedIn group or liking us on Facebook